THE decision to end duty free sales within the EU by 1999, which is expected to be formally announced later today, is likely to cost Aer Rianta £20 million per year in lost earnings.
Aer Rianta has said the substantial loss of revenue will result in increased landing charges at Irish airports and may in turn push up ticket prices.
A European Commission report states that countries should start preparing now for abolishing duty free sales in June 1999 as originally planned.
Lobby groups such as the European airports council and the International Duty Free Confederation, which includes Aer Rianta, had campaigned to retain EU duty free sales, arguing that the industry employs more than 100,000 people.
A spokesman for Aer Rianta said last night that the company would continue its lobbying activities "until, hopefully, the Commission changes its mind".
The EU decision means the end of duty free allowances for travellers moving within the 15 nations of the EU who collectively account for about £2.6 billion in sales each year.
The end to EU duty free sales is also likely to have a negative impact on Irish Ferries, Stena Line, Aer Lingus and Ryanair.
